The impact of Online Banking on Bank Performance

CHARLES UNIVERSITY IN PRAGUE
FACULTY OF SOCIAL SCIENCES
Institute of Economic Studies

The impact of Online Banking on Bank Performance

Master thesis

Author: Bc. Rrezarta Halili
Supervisor: Doc. Ing .Tomáš Cahlík
Academic Year: 2014

Declaration of Authorship
The author hereby declares that she compiled this thesis independently, using only the listed resources and literature. The thesis has not been used to obtain a different or the same degree.
The author grants to Charles University permission to reproduce and to distribute copies of this thesis document in whole or in part.

Prague,

Signature

Acknowledgments
I would like to express my deep gratitude to my supervisor, Doc. Ing. Tomáš Cahlík for his dedicated guidance, continuous support, and valuable assistance.
Many thanks go also to my two best friends Adelina and Genta who were always present with their support and help. Last but not least, I would like to thank my family, especially my mother without her love and sustain I would not achieve this work.

Abstract
The performance of commercial banks is changing due to the technology improving day by day.
The purpose of this study is to highlight the challenges that are derived from Adoption of online banking. The engage of the five European countries with a period of study from 1999 – 2010 to adoption of online banking is the core idea of this study. The empirical analysis would employ data obtained from 22 commercial banks from the following countries: United Kingdom,
Germany, Czech Republic, Latvia, and Poland. We want to show that the adoption of online banking increase the bank performance indicator. With the application of the Instrumental
Variable concludes that adoption of Online Banking is negatively related with three bank performance indicators as: Return on Equity (Roe), Return on Asset (Roa) and Margin (Mrg) as a main fault to global financial crisis.

Contents
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